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decision, if he had said no, this issue would have been decided. but by deferring it, my hypothesis, he wanted to wait for a time after the election. stuart: he's not really changing his mind? >> i think that's what he's going to say. further study led to approval. my opinion here. stuart: that's what you would recommend. >> that's certainly what i would recommend. stuart: doug, stay here. >> of course. stuart: and the senator from north dakota says the pipeline would run through his state and tons of jobs for north dakota, and he wants it and a majority of americans do as well. that part of the story at the top of the hour. all right, everybody, did you catch the final, the season finale of "downton abbey" last night? don't worry, we will not reveal the ending. no spoilers here except this. we're talking about the show and how it portrays the rich in a positive light. and that's something different for you. back in a moment. we know all your investments may not be with fidelity, but we can still help you see your big picture.
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>> we are a financial program. oh, yes, we are. and i bring you the financial angle on "downton abbey." the finale, final episode of three last night. i'm not going to tell you how it it ended, but i will ask you this, which other tv series shows rich people behaving well and when was the last time you saw the pursuit of profit. and isn't that different from the contempt of the fat cat rich. and democrat doug schoen is still with me. any comment on "downton abbey." >> well, i guess my-- >> don't hedge. >> wealth creation is good. more wealth creation is the better and what's missing in this country now is a celebration of growing wealth to expand the pie to create jobs and have a better country.
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stuart: well, what did you say? in this country right now, we have a celebration of growing wealth? >> we don't have it. stuart: we don't have it. >> that's what i'm saying, we don't have it on either side and we're losing as a result because nobody talks about the centrality of economic growth, expansion of the pie. creating jobs, a better society. stuart: tell me the truth. do you think that president obama really values growth for our economy or redistribution of the wealth? >> i think he's far more in the camp of redistribution than growth. and his central campaign theme he made clear was redistributing wealth and he's done it, kept his promise. >> let me read this for you. the congressman henry waxman demands more executive orders from the president. in a letter to the white house, waxman wants the president to issue new regulations on everything from power plants to oil refineries and even household appliances. henry waxman, a member of congress, he wants the president to go around congress with his
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voice. >> we have the separation of powers in this country. something that's hugely important. with a waxman is recommending and i recognize just waxman represents to me a liberal, too. and i'm against conservative or moderate as liberal. but the idea of president going around congress to get things done, especially when he gets up in his state of the union and says that the sequester is not his work, but the work of congress, suggests to me that the democrats are trying to have it both ways. blame congress for that which they've done that they don't like and the president can take power when he doesn't like what congress might do. it it sets very bad precedent. stuart: it does indeed. so you give me your professional opinion you think that the president will approve the keystone pipeline? >> i do. stuart: do you think he'll go ahead with regulating household appliances and climate change? >> i think the president is going to do as much as he can to
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implement his agenda without congress all the way blaming intransigents and gridlock of washington why he feels he needs to do executive orders. stuart: what happens with the next administration which may or may not be republican. >> just as bad as the republicans do it as if the democrats do it, but it's a very dangerous trend, we have to make congress work, we have to get the budget balanced, get rid of sequester with a big deal. i don't see it happening, we're all going to lose. stuart: what proportion of the democrats, your party, what proportion of democrats do you like? >> i think maybe 25, 30%, but as congress is very, very small, the power is with the left, and that is very bad for the country. >> you know, doug schoen, that was a very good-- i appreciate you having me and in the spirit of president's day we're bipartisan and there are problems on the left and the right and we have to call them as we see them. stuart: whatever you say, doug schoen. thank you very much, doug,
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always appreciate it. >> okay. stuart: how is it, why is it that gold is still trading 1600 an ounce. it is right there. as of today. why isn't gold going through the roof like our next guest said it would? we will ask you. plus, we're talking secrets, big money secrets. what kind of things are hidden during a divorce? the man whose job it is to find those little things. sometimes big things. they will join us tonight. ♪ ♪ [ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds
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>> today's president's day. markets are closed. u.s. stock market that is. we have oil and gold and they are trading. we start with oil, up only a tiny fraction, only a buck and gold is way down there at 1611 as of right now. got to tell you about oil as well. that market is open. $95 per barrel, but very, very little movement there. gas prices we've got movement all right. the price is up. national average for regular up more than a penny again overnight. 3.73. and that makes 32 straight days that regular gas has moved up and in that one-month period we're up 43 cents and affects your wall each and every day. i want to talk about gold more, please.
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why isn't it much higher in price if ben bernanke keeps printing money. and joining us peter, you've said that-- you've said it on the program. gold is going to go up. now, i understand that you're probably sticking with that prediction, gold is going to go up in the long-term. why hasn't it gone up very much in the last year, year and a half, when ben and everybody else is printing like crazy? >> well, first of all, remember, we had a huge move in the last ten years, and started this bull market from under $300 an ounce. so it had a big move from 300 to close to 1900. it has been consolidating for the last couple of years and i think it's preparing for another big move up, but i think a lot of people just don't understand the situation. people think that the problems have been solved. they think that the global economy is out of the woods, that the worst is over for the u.s. and stock markets are rising. now, the euro is rising and people are complacent about the problems over there and they think there's no reason to own
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gold and i think they're making a mistake. the only reason that it looks like the problems are getting better because governments around the world are creating so much inflation to cover them up. and it's inflation that's driving the stock market higher. you mentioned gas prices and inflation is driving gas prices up. pretty soon people are going to realize that inflation is a lot worse than the governments let on and i think that people are going to start to embrace gold in a big way. >> hold on a second, we've got japan saying we must have inflation, and we want some inflation because they've had a period of deflation and they're printing yen like crazy and prime minister says you, the central bank of japan if you don't print money we'll change the rules and make you print more. they don't have inflation fear. >> sure they do. deflation through the roof and prices aren't collapsing in japan, they weren't rising, but good for the japanese consumer--
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>>, but, hold on a second, peter. there is no inflation in japan. the price level today is virtually unchanged from what it was three, five years ago. it's not there. >> but inflation is an expansion in the money supply and the supply of credit and you do have that, but you had some dynamics that were keeping consumer prices in check despite all of that inflation, you know, that's going to change in japan. the japanese are going to start to see big increases in consumer prices and not going to like it. take a look at the u.k. they're tolerating inflation it it picking up in the u.k. and yet they don't care and they're going to keep printing money. inflation is the new monetary policy. central banks create inflation and governments don't have to default on their debt. stuart: you're right on there. >> and about the price-- >> markets anticipate and i think you're right, everybody's printing, and everybody's printing money, you're right on that. there's no question about it. but markets anticipate. why isn't the gold market anticipating the inflation?
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why not? i mean, gold is-- >> and i don't think that markets have done a very good job of anticipating anything. you remember during the housing bubble. real estate prices kept rising, and mortgage prices were rising in value and the housing public. the collapse was around the corner and markets didn't anticipate any of that. i think that the markets are blind sided because so many people don't understand the dynamics and doing the wrong thing. eventually reality is going to catch up with the markets and then the markets are going to react in a big way. >> okay. i believe on this program you said, and this was a few years ago, i think you said that sooner or later, a house is going to be worth less than an ounce of gold or a measurement of gold. sticking to that? >> not a house, i said that the stock market. i've been predicting that the dow and the stock market would be about 1-1. i started making that prediction when it was over 40-1 and now it's 8 or 9 to 1 and i think in the 6's at one point. but i also said that housing
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prices are going to continue to fall as measured by gold, especially if they create a lot of inflation to keep propping up nominal home prices which is exactly what the fed is doing, but real time prices are going to fall that much more. i mean, you talked about gas prices before i came on and it's not just gas, it's food prices that are going up. it's the price of everything that's going up. it's just that the government doesn't acknowledge the pain that consumers feel because they've he got these phony numbers and cpi that were deliberately designed to hide inflation and we export so many of our dollars, we have a huge trade deficit and now the foreign central banks are finding treasuries, you see the inflation in the bond market. >> and eventually that is going to burst and all of that money is going to chase real goods. stuart: i've got to have a time frame. it's easy to say that at some point in the distant future the price of gold will go to $3,000 an ounce or whatever. give me a time frame. how long will it-- >> i don't think it's in the
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distant future, i'm not smart enough to know exactly when i'd be shocked if we didn't have an explosive price up in the price of gold. maybe 2013, 2014, a currency crisis and sovereign debt and gold is going to do well in that environment, unfortunately the u.s. will suffer. stuart: we appreciate you being on the show and come again soon. >> thank you, sir. stuart: president obama and tiger woods teed up. and the tax refugee, who he is. the media did not have access to the outing if you're looking for video or pictures, they are not available, but the president golfed with tiger and that tiger woods story brings us nicely to the next subject, hiding assets during a divorce. attorney phillip siegel is with us, welcome back to the program.
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you deal with high-end people, they hide assets during a divorce that confuses the other people. i've got that. bring it down to earth for me. most of our viewers are not super high-end, super wealthy, they're in the middle ground. bring it down to earth. how do ordinary people hide -passets from their former partr in a divorce? >> well, it's important to say that studies show that while married, about half the people, half the people conceal financial transactions and don't tell the full truth. stuart: ooh, phillip siegel now you're touching on dangerous ground here. half the people during a marriage conceal assets from their spouse? >> conceal some financial transaction according to polls. stuart: that could be because they have separate bank accounts. >> because-- >> probably is. but certainly what we're finding out and this is we have started-- and they started the divorce act because we've noticed the market
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driven demand by spouses to find assets from their-- that their ex's concealed. position, you can form a limited liability company overnight, and then use that company to buy a vacation property for $200,000. most people are not equipped to figure out that their spouse is behind the vacation property that bought the house. stuart: but that's not going to say common, but it happens. >> it sure does. stuart: frequently? >> well, it's certainly in our case studies it has. stuart: so i go down to delaware. >> you don't have to, you can go on the phone and-- >> i can start an llc, limited liability corporation. >> limited liability company in delaware, about $100. stuart: a hundred bucks. that gives me secrecy. >> quite a lot of skissy. >> how do i final the 200,000 bucks or whatever it is to the llc in delaware to buy the vacation home? >> well, the $200,000 has to go to a bank account that the llc maintains and that llc buys the
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vacation property and the funneling of the money is something that you might have arranged during your marriage if you're one half of the spouses are concealing some of the transactions. for example, people with small businesses can funnel off money, they can cook the books while they're married and say they're not doing as well they are and some of the money goes into a separate account, goes into the llc account and gets the house and when the divorce happens we get called in figure out why-- >> why do you have a smile on your face, the business booming, surreptitious asset creation? >> i'm smiling because no matter how many times you talk about it it, and no matter how many times you warn people it might happen they say it probably won't happen to me and it does happen to them. i smile, but really, a divorce is a terrible thing and people's lives get blown up and our clients often come to us really in distress and we like doing this because it actually helps people and we find that even
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people with modest means can sometimes get great help from someone's hidden lottery winnings. we had a case someone hid $100,000 lottery winning or gambling winnings or hide a fur coat for $40,000 in a po box they've been maintaining secretly for seven years. we've found that. so when you can really help people, it's nice. stuart: i guess so. it's just, the cynical view of marriage and it's kind of cynical. isn't it? it's happening so much just-- >> well, the sample is skewed, if someone is not getting divorced and don't need to find out they don't come to me. i get the worst case scenarios calling into charles griffin. stuart: is business booming. >> we're hiring, put it that way. stuart: you're hiring. >> we're hiring another investigator because of that very thing. stuart: help wanted sign at phillip segal's office. nice to see you. thank you. i've got to tell you what is
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coming up for you, ask the democrats about the last four years, they will say that the economy generated 5.5 million jobs, is that the whole story? new at 10 we'll tell you how many fewer jobs there are today compared to five years ago, it's a very big number and we will have that number for you. i want to ask your opinion. what do you think about phillip segal and the hiding of assets during a marriage, and digging out those assets in a divorce proceeding? tell us what you think. all right. 9:40, time is money, 60 seconds, here is what else we've got for you. coming up on "varney & company," the markets may be close heed, but we're going to try to make you some money. charles payne joins us in the next hour and he's going to cover stock picks and so does shah gilani, your money doesn't take a holiday and neither do we. the new york times disagree with me when it comes to tax refugees, and mentioned me
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twice, calling tax migration a myth. and seems a difference of opinion. i will layout my opinion in my take 10:15. you know i'm no fan of obamacare, think it's lousy piece of legislation. in the next hour, a guest says obamacare discourage marriage, i think that's a stretch. even i have a problem believing that there's a relationship between obamacare and marriage and divorce, but our guest will tell us, yes, it is true. much more on the gas price spike coming up next. 32 straight days, why is it going up so much if oil down the line is not spiking. eric bolling has an answer for us and he is next. that axiron is here. the only underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied
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plus get this document shredder free-- but only if you act right now. call the number on your screen now! >> the not too long ago, eric bolling joined us to tell how to cash into the gas spike by investing in the refiners. and welcome back co-host of "the five", hit show by the way. >> and cashin' in over the
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weekend. stuart: let's not forget, a long laundry list. and you say that gasoline is going up at the pump because it's a refining problem. >> i still say that. there are a lot of refiners who are going down for what's called turn around and been in the refinery from a winter blended gasoline mix to a summer blend which is bay way a more costly mix, there are over a hundred blends of gasoline in america and why the gasoline prices rise year over year over year, more environmental issues on the state, local level. and winter grade, california blend. east coast blend. chicago blend. oxygen, revapor pressure on and on. you may have an abundance of supply in one county and the next county over can't use the supply because they have environmental concerns and maybe has to transport it hundreds of miles away and said for years,
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for years on this network i even did a special with governor palin about a year and a half ago. if you eliminate the blending requirements, pick one grade of gasoline, one environmentally safe and fun and everyone's happen, tree huggers are happy, capitalists are happy, and one blend throughout the country and probably drop gasoline prices at the pump a dollar a gal. stuart: you're kidding. >> no. >> there are dislocation, transportation issues that get built into the price of gasoline. you pick one blend, make it a winter blend and summer blend for environmental concerns, pick one and drop the price substantially and go with it. earlier on shot we had doug schoen on the program, a democrat. he says he thinks the president will reverse course and approve the keystone pipeline. let's bring in the price of gas, do you think if you approve the pipeline tomorrow morning it would make any difference whatever to the price of gasoline? >> the left will tell you no. most people say it's not going to have any effect because the
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gasoline or oil, crude comes down from canada, it's a heavy crude in canada, it will come down and get refined in the the houston area and various other areas, and eventually that will work its way to the pump. won't happen overnight because you have a 40, 30 to 45 day leeway before the price of crude oil gets turned into the price of gasoline. don't forget, the price of crude oil is the major, major input cost to the refiner, the feed stock that goes in. if you're dropping the price of crude oil because there's more supply, of course the price of gasoline will go down. will it happen overnight. probably not, but it has to drop. it's the major cost to the refiners. stuart: what's your professional opinion? you were in oil traded-- >> 27 years. stuart: doug schoen says he thinks the president will reverse course, okay the pipeline. what do you say? >> i think he will, too. but president obama has shown he will not do anything unless there's something in it for him, too. my guess, some sort of carbon trading, cap and tradish type of thing. he may not go for the full thing because he probably wouldn't get
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it. he may get some sort of i don't know, taxing on the oil that comes through. it's a trade, it's a trade-off with president obama every single move he makes my guess because it's so popular the pipeline he'll do that, but there will be some sort of kickback, in the in the temps of cash kickback in terms of president obama, but some political kickback, political capital. stuart: that's fascinating. eric, thank you very much for joining us. >> anytime, stuart. stuart: appreciate it, see you later. time for your gold report. 1610 as we speak, off one dollar as we speak. maker's mark changed their mind. yes, they did. saying it will not water down whiskey to keep the demand. it will not. a reverse course for maker's mark and elizabeth mcdonald is here and she's next. ♪ this is $100,000.
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>> the people who make makers mark came to their senses. instead of watering down the whiskey and reducing the alcohol content maker's mark will go to the original formula. customers were outraged at the idea of a change.
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and maker's mark said they do it to keep up with demand. charles and liz are with me. i say he they came to their senses after a disastrous marketing mistake liz: a disastrous miss declaration and maker's mark saying you spoke we listened and here is proof, meaning the proof. people say don't touch our culture of drinking we like it at this level and increases supply, what does that do. stuart: nothing apparently. i don't think they increased the supply liz: they were going to. stuart: why don't you put the price up. charles: you had the line of the day. when you said it was new coke, that's essentially it. new coke and wow, after that disaster, that fiasco you have to be so cocky that everyone loves your drink, but he they love the drink that they were drinking and now management says you won't notice a difference. and like the president saying we'll spend a lot of money and no deficit.
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>> and why was-- >> and ask you, charles, last time when we discussed maker's mark you brought up the subject of everclear. 160 proof. charles: 190 proof. stuart: short changed them. can you buy everclear in a regular liquor store. is it moonshine? >> it's akin to moonshine, legal in some states. have you had moonshine. stuart: no. charles: i had it by accident and playing football in the old neighborhoods and i thought it was water, so thirsty and a gulp of it. i think my lips peeled, my liver peeled. i never felt that much-- it felt like i was touched by the devil. stuart: how many years ago was this. >> i was like 19, 20 years old. this morning-- . [laughter] takes it lot to get charles up for this show. all right, everybody, more on everclear at some point in the future i'm sure. if this is such a robust recovery, then, where are all of
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the jobs. it's not just us asking the question, a mainstream newspaper doing the same thing. we have a number on how many jobs we've lost in the last five years, this will be new at ten and it will be next.
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stuart: the president tells us that our economy is recovering, that we are making progress on jobs. that we must persevere with his policies because we are going in the right direction. yet this morning the washington
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post points out that there are 3.2 million fewer jobs today than there were in 2007. 3.2 million fewer jobs. despite four years of lavish government spending and over 5 trillion dollars worth of extra debt, we are nowhere near the employment levels we enjoyed under president bush. which brings us to the pipeline and the president's dilemma. environmentalists hate keystone and they are pulling out all the stops to kill it stone cold dead. but if the president says build it, bring oil down from canada, yeah, go ahead and do it, then we create thousands of well-paid jobs at no cost to the taxpayer. a republican senator says get on with it. he will be with us shortly. >> while cnbc is on tape, we're
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open for business. stuart: oh, yes we are. the national debate on climate change and energy takes center stage on this president's day. thousands of demonstrators marched in d.c. this weekend calling for president obama take action on global warming. they want a carbon tax and they want the president to block that keystone pipeline. the demonstrators formed a human pipeline that went from the national mall to the white house. the protest was billed as the biggest ever climate demonstration in american history. organizers estimated the organizers they say 35,000 people showed up to protest. and more are expected today as well. it is monday morning, president's day. we have our company for you all ready to go, look at them, elizabeth macdonald is here and charles payne of course is here. first, both of you, your reaction to the climate change demonstrations in washington. go. liz: listen, the unions are for the keystone pipeline. afl-cio building and construction division wants it. the entire federation may be in full support of this.
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but this runs counter to what the president has said that he wants to do something about climate change. he's really in a box right now. stuart: charles? charles: he's in a box. i wonder how many of those people at that protest really know anything about this. you know, in other words, how many of them hear the news. yeah, i heard, i heard. and how many of them actually have done studies on this, and how many of them actually realize -- first of all i want to know how many drove there or flew there. that's another thing. but how much how incredibly successful this has all been, all of this fracking, all of this, the positive impact to american lives and livelihoods has been remarkable, really has been. stuart: i see an element of desperation on the environmentalists. i think they believe that the president will okay this pipeline, and they are desperate to stop it. i think just that element of desperation is right there. charles: you know what? he brings them up at every turn. he's been in their corner so far. it seems like they have more pull in the white house even in unions -- even than unions, if
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he does, he might give them something else. that's what i worry about. keystone but we won't let anything else happen. stuart: eric bolling said that five minutes ago yeah you might get a pipeline or a trade off of some kind of tax or something. liz: if there's a carbon tax, how about cars that need coal fired electricity. 75,000 jobs created in canada from the pipeline projects over there, and this oil from canada would displace two thirds of venezuela's output. if we want to lessen our dependence on opec, here's the answer. stuart: we will have more on this in a one moment. you know, that u.s. markets are closed today. but we have got gas prices for you. i'm sorry to say they continue to climb big-time. the national average for a gallon of regular up more than a penny again overnight. 3.73, look at that. that makes 32 straight days that regular gas has moved higher. i want to start with you charles. looks like we're at $4 a gallon
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again. charles: we've seen this before. it's so odd that the thing that might stop this is the fact that the economy doesn't support it. that's always been that magical number where people slow down just enough, you know, whatever it is, that number seems to hit pocketbooks enough where it changes behavior. but the economy certainly doesn't support $4 gas. stuart: very bad news for this economy. charles: it has been bad news. stuart: 3.73? if you have got a premium quality car -- what i mean is a car that takes premium gas, some european car, for example r, you're spending $100 to fill up at the moment. premium is well over $4 a gallon across the country. that takes spending power out of the economy. it's bad for the economy. liz: out of the middle class and lower brackets who have to drive to work too. stuart: don't think that just because the markets are closed today that we're not trying to make you some money, certainly not, charles will have a couple more picks today. and so does our money man in florida, those picks are going
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to come at you throughout this hour. right now we're getting back to that big story, the pipeline. a new poll from harris interactive shows almost 70% of people in this country support the construction of keystone. our next guest is a big advocate for it as well. joining us now on the phone republican senator from north dakota. senator, what a pleasure. thanks for joining us sir. >> good morning, stuart. good to be with you. stuart: earlier on today we had a democrat on the program and he said he thinks the president will reverse course and he will say yes to the pipeline. in your considered judgment, do you agree with that? >> you know, stuart, that's hard to say. the president or this administration has delayed the project now about four and a half years. and that's a huge problem. we're trying build needed infrastructure to help develop energy independence in this country, but at this point, it's hard to say. what i'm doing is continuing to build support in the congress so that we approve it, if he doesn't. stuart: what kind of support are
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you getting in congress? is it bipartisan? are there democrats who are on board with this? >> well, it's passed the house several times. i actually got it passed in the senate along with the -- we attached to it the payroll tax holiday, a little over a year ago. the president rejected it. he made the decision not to proceed until after nebraska. now nebraska's approved the route. in fact, every state on the route has approved it. so we're going back -- we had a test vote last year on it. we got 56. we need 60 in the senate. just pulled a letter together with 53 senators so a majority of the senate on board. asking him to approve it. we're building that support. and he's got to make a decision here after like i said almost five years. but i think if he turns it down, we have a real shot at getting it passed through the senate and hence through the congress without him. stuart: there's all kinds of estimates about how many jobs would be created if we did
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indeed build keystone. what estimate are you using? >> i say tens of thousands. the perryman group did a study and had it well over 100,000. but then the opponents some special interest groups that you saw demonstrating you know have come out and said oh that's not right so on and so forth. but clearly tens of thousands of jobs. look it's about energy that we develop here in our country and north dakota and canada, the light sweet crude, that moves along with the canadian crude. it's jobs and energy. it's growing our economy without raising taxes, that will help the deficit. it is about getting ourselves off oil from places like the middle east and venezuela. it's a national security issue and that's why as you saw in the poll almost 70% of americans support it. stuart: senator john hoeven, republican from north dakota, thanks very much for taking time out of your holiday today. we appreciate you being with us. >> good to be with you. stuart: yes, sir.
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i'm going to break into this for a moment of news of one of my favorite tv shows. the final episode of season 3 aired last night. no, i will not tell you how it ended. but i will say is this, it is a very rare program that does not demonize the rich. it shows the rich people behaving very well in the pursuit of prophet. -- in the pursuit of profit. it shows going after profit is good. when was the last time you saw that in a tv program in this day and age? liz: i will keep radio silence on the finale. it was amazing. you are right. a big land holding and big job creating that he's created there. when you see the people who work for him, they actual kind -- kind of like it. you don't see a lot of misery in the workers. stuart: he's generous and concerned with the people who are on his estate.
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he's very nice to them. he's got a young upstart, a middle class guy, matthew, he comes along and says we have got to run this operation for a profit. and he agrees with him and he turns around the estate. i know you don't watch it, charles, but you have to love it. charles: i love what i'm hearing. every time i pick up a magazine, that's all i'm reading. everyone loves this show. i've read where people love it. stuart: do you have netflix? charles: we do have netflix. i told my wife about the show. i think she's going to catch up. stuart: indulge into a marathon of episodes. charles: if i'm out three or four days next week, you'll know why. stuart: don't necessarily approve of that but like your viewing habits. new at 10:00, cisco's chief john chambers says his company will not spend money in the u.s. or hire any new employees until the tax code changes. cisco has about 46 billion dollars in cash on hand.
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most of it is overseas. company, your reaction? charles: steve jobs more or less said the same thing. that's why i thought it was so curious when tim cook was in michelle obama's box in the state of the union. it felt like something was up with respect to either some sort of money grab and him sort of saying it's okay. it's just absolutely amazing. there's a fortune sitting over there. there's no way in the world we couldn't get at least 400 billion dollars of that back, tax it at 5%. let it come here and create jobs at no expense to anybody watching the show. liz: even other ceos say yes to that, have a good business environment here to bring that money back on shore here in the u.s. you are going to have what, government paying for green chutes in the economy, that's very expensive to do that. stuart: john chambers i was critical of him because i thought that he was more towards the left. but now he's saying come on, you've got to get that corporate tax rate down and i will bring the money back. charles: this is bottom line --
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i mean if president obama wants a manufacturing renaissance, i'm very confused. he expects the company to pay all this money in other places and then pay another 40% -- have a holiday, bring that money back, watch a miracle happen. stuart: all right, charles now try this for a second. during the state of the union address, president obama called for increase in the minimum wage from 7.25 to 9 bucks an hour. paying people more sounds like a good thing. we've got that. but our next guest says this is a major anti-jobs policy. let's bring in the chief economist of the nfib. bill, i hear all kinds of studies that say look, that on both sides of the fence, it's good for jobs. it's bad for jobs. it's good for working people. it's bad for working people. tell me what you found at nfib. >> i think most of the good studies tell you the common sense answer which is if you raise the price of anything, people will take less of it. and that includes labor. studies have shown for decades that in fact it's a job loser. if you raise the price of the
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labor, but you don't get anymore output obviously costs go up and these costs have to be passed on in the form of higher prices, but that's the hurdle that a worker has to pass to be hired. that is, they have to bring enough value to the company to justify the wage. and we just raised it -- we want to raise it from 7 to 9? that's a huge hurdle. that means a lot of job opportunities go missing as well as having some people fired. stuart: now, there are some studies that look at areas where the minimum wage is higher, much higher than $7.25. those studies conclude that in those areas, the economy, the local economy is doing better. how do you counter that point of view? >> well, that's pretty simple. that's a very naive study. in general we find that congress never used to raise the minimum wage until times were good. so even though the cost of labor went up, if they were able to put more hamburgers out and bring in more value, then of course you still did okay. but let's look at 09.
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the first half, the economy is crashing, gdp is falling at about 4% annual rate. we lose 250,000 jobs. then the economy bottoms. turns around. we grow 4% in the second half. we lose 580,000 jobs. i think the fact we raised the minimum wage that july over 10% had an awful lot to do with that. stuart: is that accurate? we lost 580,000 teenage jobs in a six month period? >> that's what bls tells us, yes. stuart: one last one, if you have a number for me, if we put the minimum wage to $9 an hour, how many jobs do we lose? can you estimate? >> we can't estimate it really well. we know it will be some. it's not just losing jobs. it is also preventing new ones from being formed. just take a little pizza parlor that's doing 100 pies a day, they have 7 workers working 2,000 hours full time, the wage bill goes from 140,000 at 7 bucks an hour to 180,000, so
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that's a $40,000 increase bottom line. how are these little owners of these -- how are these owners of these little jobs going to handle that? raise prices. 100 pies a day, at least a buck in the pizza price. the higher the price of pizza, the less take-in, there goes jobs. stuart: we've got it. thank you for joining us, sir. >> thanks stuart. stuart: it's been a story we have been hitting on varney & company almost all year the rich leaving high tax states to low tax states. the new york times called it a mist. my take on that is next -- the new york times called it a myth. my take on that is next. but first this is next. stuart: how many years ago was this? charles: i was like 19, 20 years old. [laughter]
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then find out how to get lunesta for as low as fifteen dollars at there's a land of restful sleep. we can help you go there on the wings of lunesta. stuart: listen to this in our business brief. there are new reports that says google plans to build stand alone retail stores in america by the year 2013 holiday shopping season. that's according to to sources. the tech giant plans to open a store that would sell its own google merchandise. but in a statement google says no final decision has been made. good story. best buy setting up in the battle against on-line
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retailers. it announced that starting next month it will match all local retail competitors and major on-line competitors like amazon if the customer asks for it. it hopes this will stop customers from shopping at its stores and buying on-line. we will be back in 90 seconds. to grow, we have to boost our social media visibility. more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes."
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stuart: going to bring in charles now who is going to make some money for us with true religion apparel. full disclosure, i do own some of that via my daughter. go. charles: i was going to say they usually say people buy what they know. you don't have a pair? stuart: are you kidding? 128 bucks a pop. liz: you're tighter than two coats of paint. stuart: let's repeat that. tighter than two coats of paint? liz: yes. charles: we went to the mall this weekend. i could not believe the traffic in true religion. my son wanted a pair. i had forgotten how much they were and said yes. i made a mistake. they cost over $200. stuart: for a pair of jeans? charles: i said any other pair of jeans you get from here on out are levi's and they are going to cost $40 or less. they put themselves up for sale late last year and the stock popped when they did. i was shocked. i think they are turning around. they missed a few earnings reports. i think they are turning it around. i like the guidance.
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the street is starting to up their guidance here. the stock has a real clear shot to 30 from here. a break out would take it to 35. unless they have a few more hiccups, i like the risk reward on this. stuart: you would buy it and hold it? charles: if it goes from 27 to 30, i'm out -- i might be out -- i don't go in -- there's certain stocks, if i buy ibm you buy ibm and hold forever. if true religion popped for 15% on tuesday morning, i would take it. stuart: it opens tomorrow morning around 27, almost 28 dollars a share. charles: first target 30, longer term would be 35. stuart: we're going to watch it. thank you very much. it's a rare case of organized labor disagreeing with the obama administration. they want obama to approve the keystone pipeline. thousands of jobs would be created. will union influence push the president on keystone and make
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him approve it? that will be coming up in a few minutes. the myth of the rich who flee from taxes. that was a headline in saturday's new york times. the story suggested that wealthy people do not move because of tax hikes. it caught my attention because my name came up in the story, twice. here's my take, people do change their behavior when confronted with higher taxes, and that includes changing their address. tax refugees are real. they are not a myth. on this program, we've reported on investment managers moving from the new york area to florida. we've reported on the 2 trillion dollars worth of income that is shifted out of high tax states. we've covered the complaints of phil mickelson over his 63% tax rate. the exit from france's 75% rate, along with a tennis star, a singer as well as wealthy entrepreneurs. let's not forget, governor
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christie blamed high taxes for the loss of 70 billion dollars worth of income from his state alone. people simply left. the times says climate is a prime reason for relocation, not taxes. i don't doubt that the weather is attractive in florida, but even more attractive is the absence of a state income tax and a death tax. people do move to save tax money. remember please the left will move heaven and earth to make tax hikes easy to take. the left would love to claim that there are no negatives, just a lot more money for all those lovely government programs. and they want wealthy and successful people to pay up and stay put and of course to shut up as well. won't work. you can use all the academic studies you like, but you can't change reality, which is this, raise taxings scene people change their behavior -- raise taxes and people change their behavior and because of that, in the long run tax hikes do not bring in all the money the government expects.
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stuart: the city of baltimore facing a 750 million dollars budget shortfall, headed for financial ruin in the next decade, according to an independent study. so what's the solution? spend $585,000 on a study of how to save money. yes, baltimore hired outside consultants to tell them.
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their city budget director says the outsiders were needed because they didn't have the expertise or the staff to do it on their own. okay? no comment required ladies and gentlemen. we have been talking about the keystone pipeline all morning. let's bring in our next guest, miller and long's president. you're an expert on labor relations. that's what you do. do you think that the labor unions have the clout to make sure that the pipeline is built? actually no, in this case, i don't. if i was a betting man, my money would be on the green side of the equation winning, because i think this president has made the equation that what he's really interested in is the 2014 midterms, and in order to be successful there, you need an enthusiastic base turnout, and labor union support kind of peaked. i mean it is kind of a standard thing they can take for granted. what he really needs is those college kids and people like that in the green movement out doing all those things, so
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that's what he needs. i think that's the way he will go. stuart: you are running counter to the opinion of two people on the show previously. that's interesting. both of them think the president will build this pipeline because of national security concerns. why are you laughing, though? tell me. >> because i don't think this president makes decisions based on those kinds of considerations. i mean, it's -- he's looking for the provocative act. he's looking for a thing that divides people and things like that. and what he's really concerned about, though, if he can do something to create a greater power base for 2014, which is, you know, historically second term midterms don't go very well for the incumbents. president george w. bush notwithstanding, he had, you know, a big turndown here, and if they have this same problem, maybe even lose the senate in next midterms, then the president's last two years, you know, he will be an even lamer duck at that point.
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stuart: we hear you bret. i'm not so sure i agree with you. we will see how it plays out. i do want to talk about the national relations labor board. the president appointees to it, ruled unconstitutional, you can't do that -- a court said no they can't be members of nlrb. but now he's reinstated -- resainted, -- reinstated, renominated those two. >> there's absolutely no chance, literally barring a meteor strike that takes out the entire republican apparatus, there's no chance that these people will actually be confirmed in any way shape or form. labor unions in the end are actually kind of business in one respect or another. they will take an 80% solution as often as not. the president could have actually been helpful to them and actually nominated some
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people who maybe actually had, you know, a chance of actually becoming full actual members. as it stands, these people, griffin and the other have no chance whatsoever of being confirmed. he's both undermined the authority of the nlrb, he's put them in a position that they will make more decisions that will be overturned, and in fact, he's actually diminished the power of labor union's best friend and that's the nlrb. stuart: fascinating, very interesting perspective on unions. thank you for joining us. we appreciate that. >> thank you. stuart: after the break we have a guest who says obama care actually undermines marriage. what? personally i think that sounds like a stretch, even to me. but we will explain, and he will defend his position in just a moment.
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does say that. he's american commitment president. i think it's a stretch, but you have got some air time here to explain why does obama care undermine marriage? go. >> well, it creates a powerful disincentive for low income families in a lot of situations to not get married or if they are married to divorce. you don't have to take my word for it. a top treasury department official underpresident obama who is a -- under president obama who is a supporter of obama care says that the subsidy payments are poorly designed and have this. what he's referring to is the fact if you have employer sponsored insurance offered to you and it is deemed affordable for self only coverage, less than 9 1/2% of your income for self only coverage, your entire family is no longer eligible for the subsidies. those subsidies could be worth $10,000 or more for someone
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making 40 or 50,000 dollars a year. it is a huge incentive not to be married. stuart: i'm trying to keep this under control here, trying to follow this very clearly. you are giving me the example of a married couple, they have kids, lower income, say $30,000 a year or less. you're saying obama care -- there's an incentive when obama care comes in to have that couple divorce. >> that's exactly right. stuart: you need to lay this out for me very clearly. >> one of the spouses in our scenario will say has a job and the employer offers employer-sponsored insurance that is affordable based on the obama care definition of affordable for self-only coverage. let's say the father works. he can get insurance for himself only for 9 1/2% of his income or less. obama care says that counts as affordable insurance. your entire family is now ineligible for the subsidies. stuart: it separates out the individual, the one member of the fam -- family who is
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earning, he or she is separate from the rest of the family and the rest of the family has no coverage. that's under obama care. if they divorce, then both spouses are eligible for subsidized coverage. is that what you are saying? >> yeah, let's say they divorce in our example. the father could get the employer sponsored insurance. the rest of the family could be eligible for subsidies could get $10,000 or more on healthcare taxpayer dime. stuart: let's go to the middle class family, 52, $53,000 dollars a year, take that family of four. is there an incentive to divorce for middle income people? >> less than an incentive, but there is an incentive. as long as there are subsidies being offered, there are some people who are in this situation where they can afford the self only coverage. they don't want the rest of the
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family to be ineligible for the subsidie subsidies. they will have to consider the value of those subsidies. stuart: there's an dis-incentive to get married because that would saddle you with obama care and separate one spouse from the other, is that correct? >> yeah, for the exact same reason. stuart: i thought it was a stretch. but you've laid out your case very well. i do take your point. we'll observe this going forward. philip, thanks for joining us sir. >> my pleasure. stuart: now this about diet, several schools in up state new york and at least one in arizona are opting out of first lady michelle obama's federal school lunch program because it's too expensive, they say. the new federal rules require them to include low grain and only offer low-fat milk. sounds good for a menu. but one district claims it costs
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too much. what do you make of this charles? charles: listen, in the perfect world, you would lay out the perfect menu and then you tell someone to go pay for it. it's almost like all the obama white house initiatives. we have come up with the utopian answer and now go do it. it is not necessarily that easy in real life. liz: i wonder how much the school is spending on treating or dealing with students who have such bad attention because they are eating too much sugar and they are not eating a great diet that they should. i'm for better food in schools. i think these schools should be able to work around it because i grew up with eating donuts and chicken nuggets. stuart: you're perfectly okay. liz: i changed my diet. stuart: can you imagine the diet i was brought up in england? british food, can you imagine what i put inside myself? look at me. [laughter] charles: i've got to tell you, schools and hospitals blow me
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away though. if you look at the food they serve in both of them, it is like golly, you've got hospitals, they serve donuts and stuff all day long. stuart: no they don't. charles: but you can buy in the lobby there's donuts. every hospital i go in, i'm amazed at all of that you can buy. liz: i'm amazed how long jell-o has stayed in the hospital menu for decades. stuart: what's wrong with jell-o? that was dessert in my family six days a week. any idea what custard is? liz: it is a nice british word for pudding. stuart: no it's not. it's from birds. that's the name of the brand. it's yellow. it's vaguely vanilla and british put it on all desserts. where i come from it's custard, not custard. i digress. this is varney & company.
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and every day we find you ways to make money. after the break, two people with fresh ideas on how you can make some money. back in a moment.
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stuart: your business brief this morning, the fact that gas prices keep on going up all across the country. the national average now $3.73. it's gone up 32 straight days. next, check the price of oil.
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it is down $95 a barrel. it's not a crude oil problem. this is a refining problem for gasoline. and this president's day weekend, die-hard took the top spot at the box-office. >> reports out this morning that his agents have cancelled all his up coming appearances.
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stuart: time to make some more money for you again. and charles starts off with a stock that he likes. what do they do? charles: oil and gas equipment. it's one of these dirty fingernail plays that i like to talk about a lot. last time they reported recently, the backlog at a record, revenue at a record, the power transmission business, the gross margins exploded to the upside. oil services business. you know, it is one of these things where we talked about gas and oil at the beginning of the show. i think this is still a great place to be. this is a stock that somewhat undervalued from my point. stuart: i'm looking at the chart. didn't you miss the move? like thursday of last week? charles: yeah, they reported but again i always start with 52 week chart and then from there i
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go to a five year chart. there's plenty of room on the upside for this stock. stuart: not forgotten pike electric which was your first money-making stock. it went straight up. charles: and villa was a grand slam. i have a lot of pressure to follow up. stuart: your track record is okay. charles: it's not even three days but yes. i need to quit now. stuart: videotape lives forever. you know that. charles: that's true. stuart: let's bring in our next guest. you have three picks, the first one is called two harbors. tell me what that does. >> two harbors investment corporation is a reit. they deal primarily in residential mortgage-backed securities, all kinds. doesn't matter whether it's sub prime, the mortgage backed securities on residential side, multifamily, single family, purchase of portfolios to take care of underlying properties. it's a housing recovery play,
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done well. tremendous dividend yield at the current price and payout. it's over 17% at 12 1/2 dollars. it is tremendous. stuart: it yields 17%? it does? >> yes, based on the last payout of $2.20. the stock price at around $12.50. it's got a tremendous yield. i like buying it right here. i like buying it even lower. i love it at 10, if it ever got down there, i would load up on it. i don't think it is going to get down there. we bought it in our subscriber services down there. we have been riding it up. if it comes back down, i would like to buy more. stuart: you're shorting the euro. how do i do that? >> euo is an inverse fund. it's a leveraged fund that basically is a bet that the euro -- that the euro will go down against the dollar. i like that play very much. stuart: third, you like gold. you would buy into gld, etf for
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gold, you like it? >> yes, that's a spdr gold trust. i like it very much at these levels. i think last time i was on your show we talked about gold. where it is now, down to 135, i like it there. there's support at 150, support at 135. i like buying it here down to 135 and holding on. stuart: you like two harbors, reit, yields 17% at $12 a share. you would short the euro by buying euo; right? >> beuo, yes. stuart: you're betting that currency goes down if you buy into that one. you like gld, the gold etf, that's it, all three? >> well, gld and euo are mostly sort of currency play, we're entering the currency wars and i think both of those will do well because of that. stuart: we'll be checking up on this in the days and weeks to come. thank you very much. we will see you again soon. thank you. >> thank you. stuart: a robbery brazen crooks
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made off with hundreds of thousands of dollars worth of jewelry in a popular new york city hotel. we will bring that into a lightning round which is next. ns security? can it help protect your people and property, while keeping out threats to your operations? it's not working! yes it is. welcome to tyco integrated security. with world-class monitoring centers and thousands of qualified technicians. we've got a personal passion to help your business run safer, smarter, and sharper. we are tyco integrated security. and we are sharper.
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>> coming up on lou dobbs tonight 7:00 eastern, the pilgrims were illegal aliens? so says the obama administration.
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do we need a little diversity training? let's analyze with dr. robby ludwig. tonight 7:00 eastern. stuart: we have a lightning round, first item reader's digest file for bankruptcy again. the magazine has 465 million dollars in debt. liz, is it going? liz: this is a tough story. for decades this has been an iconic brand in the united states. a lot of people grew up with it. this is the future for print publishing, see time warner also selling off its magazines. stuart: who buys hard copy time magazine and buys reader's digest? who does that? liz: it is the internet blowing up the print model. stuart: a pew study says that more than half of facebook users have taken a week or more off from the site. that sounds like a bad trend. charles: too busy was 21%. just wasn't interested, 10%. waste of time, 10%. and too much drama 9%. that is a lot.
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those sound like people who won't come back. that's a red flag. stuart: maybe that's why facebook -- it was at 32 a couple weeks ago, now down to 28. liz: defriending facebook. stuart: finally over the weekend thieves stole $167,000 worth of jewelry from the four seasons, very up scale hotel in manhattan. they smashed a display case just feet from the hotel's front desk. they made a clean get away. any comment of any kind? wait a second, wait a second. you know the jewelry they snatched, don't you? charles: yes, i do. by the way, we ate there yesterday. there was no signs of a break-in anywhere. right around the corner at the garden restaurant. of all the things they had there, the harry winston tough you go after -- harry winston you go after that, but not what
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they stole. stuart: what am i missing here? harry winston? liz: and he doesn't watch downton abbey. stuart: that's right. what do you say about harry winston, liz? liz: listen, i love jewelry, but i can't afford that, not on my salary. stuart: have you ever bought anything from harry winston? charles: i have not. it is aspirational. [laughter] stuart: have you ever bought anything from tiffany on 5th avenue? charles: i bought from tiffany, not on 5th avenue. that store is a disaster. they better fix it up right away. that's why i have hated the stock for a long time. it's so ugly and so old. they need a complete overhaul of that store. have you been in there lately? it feels like walking back in time. they need a great architect, give them whatever they want, clean that place up, rejuvenate
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the company and the brand. stuart: that's unbelievable today. [laughter] stuart: i want charles out of the highlight reel which is next. [laughter]
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Varney Company
FOX Business February 18, 2013 9:20am-11:00am EST

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